Gold is printing a bullish pennant and is getting ready to continue bullish by the looks of it.
On the fundamental side we have, Stocks have been falling a little this morning as well and the trade talks with China being even more on the rocks based on President Trumps tweets. More incentive for people to buy up commodities including ... GOLD. Also gold appreciates as the USD falls because it becomes cheaper in other countries and people buy it up.
On the technical side we have a bullish pennant of consolidation after the huge bullish push of this month. A false breakout was printed and then pushed back down to eat everyone who did not wait for confirmations stop loss up and now we are waiting to see the real move printed.
Bullish pennants are tricky to trade because they usually shoot up and you miss an entry. For further confirmation a bullish candle needs to break and stay above the resistance and another candle needs to close above.
On the fundamental side we have, Stocks have been falling a little this morning as well and the trade talks with China being even more on the rocks based on President Trumps tweets. More incentive for people to buy up commodities including ... GOLD. Also gold appreciates as the USD falls because it becomes cheaper in other countries and people buy it up.
On the technical side we have a bullish pennant of consolidation after the huge bullish push of this month. A false breakout was printed and then pushed back down to eat everyone who did not wait for confirmations stop loss up and now we are waiting to see the real move printed.
Bullish pennants are tricky to trade because they usually shoot up and you miss an entry. For further confirmation a bullish candle needs to break and stay above the resistance and another candle needs to close above.
Comment:
Daily candle closed above and 4HR confirmation has been confirmed!